Steel Authority of India Limited
Steel Authority of India Limited Fundamental Analysis
Steel Authority of India Limited (SAIL.BO) shows weak financial fundamentals with a PE ratio of 21.19, profit margin of 2.55%, and ROE of 4.77%. The company generates $1093.1B in annual revenue with weak year-over-year growth of -2.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SAIL.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakSAIL.BO struggles to generate sufficient returns from assets.
Valuation Score
ModerateSAIL.BO shows balanced valuation metrics.
Growth Score
WeakSAIL.BO faces weak or negative growth trends.
Financial Health Score
ModerateSAIL.BO shows balanced financial health with some risks.
Profitability Score
WeakSAIL.BO struggles to sustain strong margins.
Key Financial Metrics
Is SAIL.BO Expensive or Cheap?
P/E Ratio
SAIL.BO trades at 21.19 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SAIL.BO's PEG of 2.30 indicates potential overvaluation.
Price to Book
The market values Steel Authority of India Limited at 1.01 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.27 times EBITDA. This is generally considered low.
How Well Does SAIL.BO Make Money?
Net Profit Margin
For every $100 in sales, Steel Authority of India Limited keeps $2.55 as profit after all expenses.
Operating Margin
Core operations generate 4.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.77 in profit for every $100 of shareholder equity.
ROA
Steel Authority of India Limited generates $2.08 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Steel Authority of India Limited generates limited operating cash flow of $79.76B, signaling weaker underlying cash strength.
Free Cash Flow
Steel Authority of India Limited produces free cash flow of $40.53B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $9.81 in free cash annually.
FCF Yield
SAIL.BO converts 6.86% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.19
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.30
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.01
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.58
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.85
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How SAIL.BO Stacks Against Its Sector Peers
| Metric | SAIL.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.19 | 23.53 | Neutral |
| ROE | 4.77% | 873.00% | Weak |
| Net Margin | 2.55% | -102723.00% (disorted) | Weak |
| Debt/Equity | 0.58 | 0.51 | Neutral |
| Current Ratio | 0.85 | 5.06 | Weak Liquidity |
| ROA | 2.08% | -6387.00% (disorted) | Weak |
SAIL.BO outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Steel Authority of India Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
68.13%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
11.80%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
1704.50%
Industry Style: Cyclical, Commodity, Value
High Growth